Office take-up rate in 2022 to double year-on-year
The take-up rate reached 0.56 million square feet as of the end of Q3.
The office market’s full-year take-up in 2022 is expected to double from 2021 following the strong positive office net absorption in Q3.
Year-to-date, the take-up rate has reached 0.56 million square feet (sq ft), already surpassing the 2021 total take-up of 0.32 mil sq. ft.
According to CBRE, the main drivers of demand for Q3 were expansions by tech firms such as ByteDance, flexible workspace operators and non-banking financial companies.
Fresh pre-commitments to upcoming new projects such as Guoco Midtown and Central Boulevard Towers also drove demand during the quarter, said CBRE.
While it is unlikely for the full-year take-up to return to pre-pandemic levels of 1 million sq ft, CBRE said the market's strong performance in Q3 is a "positive sign and testament that physical office still plays an integral role in the workplace ecosystem.”
Apart from a positive net absorption, Q3 also saw a further decline in Islandwide vacancy to 4.9%.
In 2023, CBRE expects rental growth to remain positive amidst rising headwinds that could temper.
“The Singapore office sector has proven its resilience with strong occupier demand for well-located, high-quality buildings. With the return to office in full swing and more companies organizing physical activities at the workplace to encourage employees to come back, the CBD is regaining much of its former vitality and buzz,” CBRE commented.